Neighborhood Stabilization Program (NSP)

The purpose of the Neighborhood Stabilization Program (NSP) is to assist communities that have been or are likely to be affected by foreclosed and abandoned properties. The program is authorized under Title III of the Housing and Economic Recovery Act of 2008. Priorities for funding are those areas of greatest need, which include metropolitan areas, metropolitan cities, urban areas, rural areas, low- and moderate-income areas, and other areas of greatest need, including:

• Those areas with the greatest percentage of foreclosures;
• Those areas with the highest percentage of homes financed by sub-prime mortgage loans;
• Those areas with the highest percentage of vacant properties; and
• Those areas identified by the state of New Mexico as likely to face a significant rise in the rate of foreclosures.

The activities proposed through the NSP must meet the National Objectives established under NSP. Specific descriptions of the individual National Objectives Activities can be found in the Federal Register Notice www.hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/nspnotice.pdf. Activities must include, to the greatest extent possible and the longest term feasible, guidelines to preserve affordability to households with incomes no greater than 120% of area median income (AMI). Eligible NSP fund uses include purchase and rehabilitation of abandoned or foreclosed residential properties, financing mechanisms, land banking, and redevelopment of vacant and demolished properties. MFA has determined that the following counties demonstrate the greatest need:

• Sandoval County - Rio Rancho
• Valencia County
• Bernalillo County (w/out Albuquerque)
• Chaves County
• Lea County
• Luna County
• Eddy County
• Curry County
• Doña Ana County (w/out Las Cruces)
• San Juan County

At least 80% of the funds allocated to MFA (as defined in the Action Plan Substantial Amendment) must be used in these counties. Additionally, 25% or $2,177,000 of all MFA NSP Funds must serve beneficiary households with incomes at or below 50% of area median income adjusted for family size as determined by HUD.

MFA expects to receive an allocation of $8,708,000, with an administrative fee percentage of 9%, or $783,720. Allocations for programs are:

At total of $1,750,000 must be spent in Rio Rancho/Sandoval County.

The Housing Development Department manages the Acquisiton/Rehab program (see below). For information on Land Bank/demo, Financing or Project Managment go to Our main NSP page for more information or contact Debbie Davis at (505) 767-2221

Acquisition / Rehab

The Acquisition/Rehabilitation activity will require applicants to identify abandoned and foreclosed properties in the designated areas, obtain appraisals and environmental clearances for the properties, purchase, rehab, and resell or rent the units to low and moderate income homebuyers and renters, assuring that homebuyers will receive a minimum eight hours of quality homebuyer education from a HUD approved counseling agency.

Forms and Reference Materials

NOFA (MS Word)

Application Format and Instruction to Applicants (pdf)

NSP Single Family Application (MS Excel)

NSP Multifamily Application (MS Excel)

Exhibit A (pdf)

Exhibit B (pdf)

Exhibit C (pdf)

Exhibit D - Application Cerification (pdf)

Schedule H (pdf)

Multifamily Schedules (MS Excel)

Single Family Schedule (MS Excel)

Training Materials

Program Contact

Eric Schmieder
Main: (505) 843-6880
Direct: (505) 767-2233
Toll free in New Mexico: (800) 444-6880